Confirmed: Hudson Pacific is going to lead Westside Pavilion redevelopment

Macerich stays on as minority partner to help transform struggling mall

TRD LOS ANGELES /
Mar.March 05, 2018 10:24 AM
Westside Pavillion (Credit: Westside Pavillion)

Hudson Pacific Properties and Macerich entered into a joint venture to repurpose a majority of the struggling Westside Pavilion mall into office space. The two companies released a statement about the move Monday.

Early last month, The Real Deal first reported that Hudson Pacific was in advanced discussions to purchase the 600,000-square-foot shopping center at 10800 W. Pico Boulevard in the Westside.

At the time, there were rumblings that Hudson Pacific would repurpose the building, with Macerich staying on as partner.

Roughly 80 percent, or 500,000 square feet, will be converted to office. The firms will retain 100,000 square feet for entertainment retail space, such as restaurants and the existing movie theater.

The conversion will cost up to $475 million, according to Monday’s announcement. Hudson Pacific will cover 75 percent of that, or about $350 million. Macerich, meanwhile, retains a 25 percent stake in the project.

Construction is expected to be completed by mid-2021.

Macerich first announced plans to sell the three-story property during an earnings call in November. The mall had been suffering from low occupancy and slow sales, and was dealt a major blow when Macy’s — the mall’s anchor tenant — said it would shutter.

GPI Cos. owns the separate 220,000-square-foot property where Macy’s stood. It is unclear what role GPI will play in the repurpose.

Los Angeles-based Hudson Pacific Properties owns the expanding Sunset Gower, Sunset Las Palmas and Sunset Bronson studios in Hollywood. The REIT has a growing office portfolio, including the 300,000-square-foot Epic building.


Related Articles

arrow_forward_ios
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)

California allows barbershops to reopen, but LA holds back

California allows barbershops to reopen, but LA holds back
California Market Center (Credit: Brookfield)

Brookfield lawsuit: Mom-and-pop retailers unfashionably late in paying rent

Brookfield lawsuit: Mom-and-pop retailers unfashionably late in paying rent
LA County assessor Jeffrey Prang

LA County properties valued at nearly $2 trillion…before pandemic

LA County properties valued at nearly $2 trillion…before pandemic
Macerich CEO Thomas O'Hern and Santa Monica Place mall

Macerich posts $27M loss; CEO touts physical retail

Macerich posts $27M loss; CEO touts physical retail
Gaw Capital Chairman Goodwin Gaw and DJM founder John Miller with a rendering of the project

An analysis of rent rolls at Hollywood & Highland

An analysis of rent rolls at Hollywood & Highland
Bob Iger, Reed Hastings and (clockwise from top left) Sunset Las Palmas, Sunset Bronson and Sunset Gower Studios (Getty, Google Maps)

Here’s what Netflix, Disney and CBS pay at for their Hollywood digs

Here’s what Netflix, Disney and CBS pay at for their Hollywood digs
Photo illustration of Hudson Pacific Properties CEO Victor Coleman and Blackstone Group President Jonathan Gray (Coleman by Rich Polk/Getty; Gray by Drew Angerer/Getty; Top Gun by Paramount Pictures/Sunset Boulevard/Corbis/Getty)

Inside Hudson Pacific and Blackstone’s field of streams

Inside Hudson Pacific and Blackstone’s field of streams
Hudson Pacific Properties CEO Victor Coleman (Illustration of Victor Coleman by The Real Deal; iStock; Coleman via Hudson Pacific)

Hudson Pacific is effusive about Blackstone deal, defensive about office space

Hudson Pacific is effusive about Blackstone deal, defensive about office space
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...